1998 (1) TMI 126 - AT - Central Excise

Summary

Issues involved: Duty demand on oxygen gas, limitation period for show cause notice, suppression of facts, applicability of extended period of limitation, penalty imposition.

Duty Demand Issue:
The appellants contested the duty demand of Rs. 89,023.50 on oxygen gas manufactured and cleared during a specific period, arguing that they were unaware of the amendment disentitling them from a notification benefit. The Department invoked a penalty under Rule 173Q.

Limitation Period Issue:
The appellants claimed the show cause notice was time-barred, as they were not aware of the amendment affecting their eligibility for the notification benefit. They argued that the Department's notice within the normal period for subsequent recovery negated any suppression on their part.

Suppression of Facts Issue:
The Department contended that the appellants suppressed their registration as a DGTD unit to continue availing the benefit of the notification, despite being ineligible post-amendment. The extended period of limitation was justified due to this suppression.

Applicability of Extended Period Issue:
The Tribunal held that ignorance of law, including notifications, is not an excuse. The appellants' non-disclosure of their DGTD registration constituted suppression to gain undue benefit. The judgment distinguished previous cases cited by the appellants to support their claim.

Penalty Imposition Issue:
While upholding the duty demand, the Tribunal reduced the penalty from Rs. 50,000 to Rs. 10,000 considering the circumstances and quantum of duty. The appellants' argument of lack of deliberate suppression was refuted, and the Department's invocation of the extended limitation period was deemed justified.

Separate Judgement:
In a separate assent, it was noted that the appellants failed to press their case on merits, focusing solely on the limitation aspect. The argument of lack of suppression due to unawareness of the amendment was rejected, as the appellants continued to benefit from the notification without disclosing their DGTD registration. The Department's decision to invoke the extended limitation period was deemed appropriate, and the penalty was reduced to Rs. 10,000 based on the overall circumstances.